Thanks guys, good to get a few different points/perspectives on the situation. Mk3 AAA, the points you have referenced are highly relevant to this - my situation is line for line as per these points; ie. I have used a particular trade mark before the registration of a similar trade mark.
It's just sad to see certain companies stoop so low - to go to these lengths to try and stop sole traders like myself from doing a hobby on the side. It's not a friendly industry, and reflects poorly on these larger companies who rely on bullying others to get their way.
Anyway, I am closing this thread; thanks Gavin, gecko2k and Mk3 AAA for your advice - I really appreciate it!
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